Relating to the protection of personal information sold by a state agency to a contractor; authorizing a civil penalty.
The bill, if enacted, would amend the Government Code by adding Section 2054.1126, which outlines the responsibilities of both state agencies and contractors concerning sensitive personal information. This includes a requirement for contractors to notify the agency within 48 hours upon discovering any breach of system security. The participation of contractors in safeguarding personal information is crucial, as the bill encourages accountability in the management of sensitive data. Therefore, it could significantly impact how state agencies handle agreements with contractors, ensuring that more stringent protocols for data privacy and breach response are maintained.
House Bill 1743 aims to enhance the protection of personal information sold by state agencies to contractors. It introduces specific legal requirements for state agencies that manage sensitive data, particularly focusing on their obligations when entering into contracts for the sale of such information. This bill mandates that contractors must comply with notification requirements in the event of a data breach and ensure that they assist affected individuals in protecting their identity and restoring their credit ratings. Failure to comply with these provisions can result in civil penalties and debarment from future contracts with the state.
While the bill seeks to enhance protections for personal information, there may be points of contention arising from its implementation. Some stakeholders may argue that the increased compliance requirements could impose significant burdens on contractors, particularly smaller entities that may struggle with the administrative costs of implementing these safeguards. Additionally, questions about the effectiveness of the proposed civil penalties and debarment measures in deterring breaches or negligent behavior from contractors may arise. This could prompt discussions regarding the balance between robust data protection practices and the potential impacts on contract availability for state agencies.